Resignation Because of the Business' Conditions - What does it Mean?


For a resignation to be valid, it has to be based on reasonable terms either on the condition of the employee or the business.

An employee had received a resignation which was reasoned on the terms or the condition of the business. The employee had first been temporarily resigned, and after that received a notification of a discussion meeting while he was on a break. He asked if the discussion meeting being held when he arrived back home, but the employer did not accept this.

Osloadvokatene Initiated Negotiations with the Employer

When the employee arrived home he received a resignation. When the barrister was brought into the case negotiations were initiated with the employer. The barrister was of the opinion that several conditions resulted in the resignation of the employee was void. Firstly that there had not been a discussion meeting which is required by law. Secondly that the employer had not proved that there was a commercial need for resignation. Thirdly that there had not been made a consideration of this specific employee being resigned rather than others. The parties did in this case agree and a settlement was made. The employee was allowed to reoccur in the position and was compensated for the loss he had been imposed as a result of the void resignation.

The Condition of the Business Can be a Reason 

The conditions in the business which can be reasons for resignation of an employee is the need for decreasing the labor, restructuring or similar conditions. These measures must again be reasoned in the company’s financial situation. A resignation is not made on reasonable terms if the employee has another appropriate job to offer the employee in the company. It is required that the employer can document that there is made a conscious and in dept analysis of the need, including other options having been considered.

Further there is a condition on the terms of the condition of the business to be valid that the employer has made a consideration of which employees must be resigned. The employee which has received a resignation must be considered against the other employees in the company. Both the seniority, qualifications and other social considerations will here be relevant, as well as the consequences a resignation will have for the specific employee.

Do you have any questions in regard resignation made on the terms of the condition of a business?

Related cases:

Resigned in the probation time – is it legal? (Norwegian)
Formal Requirements (Norwegian)